Jim Rogers: Oil Price Will Keep Rising

Published: Thursday, 5 May 2011 | 2:25 AM ET

Oil prices are likely to continue rising despite their recent spike, because the world's oil reserves are dwindling, famous investor and commodities bull Jim Rogers told CNBC Thursday.
In March, Rogers predicted that crude prices will rise over the next decade. "Where is the oil? I still want to know where is the oil? You know why the price of oil is going up? Because there is no oil," he said.

But if the price is going too high, the race to find the last drops of crude will accentuate, before the search for alternative energy resources yields results, according to Rogers.

"At $300 a barrel they would be drilling for oil under Buckingham palace," he said.

The International Energy Agency "has come to the conclusion that the world's oil reserves decline by six percent a year," and that is an argument for the rising price of crude, Rogers said.

"Say they don't decline by six percent, say they decline by four percent. That means in 25 years there's no oil at any price," he said, adding that rising oil prices will "hurt some people very badly" and some companies will go out of business.

"We will certainly have dips (in oil prices), we will certainly have consolidation, I hope we do. If oil goes into a spike, if it goes parabolic, you have to sell it," Rogers said.